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Indian Television Market

The News & Entertainment marketwith its current status & advertising

trends.


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The Indian Television Market

The market size of Television industryis around 20,000 crores; out ofwhich:

8,000 crores is Advertisement market.

12,000 crores is encrypted/pay

channels.

*Source: Price Waterhouse Cooper (PWC) report-2008.


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Television Viewership Data

*The total viewership in Indian TVmarket is 112 million; out of which: Cable & Satellite viewership= 78 million

Terrestrial/Regional= 30 million

Direct To Home (DTH)= 4 million

IPTV ( Internet Protocol Television) & Mobileplatforms have negligible viewer ship as if

now.



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Growth of TV Media Year after Year

*The growth of TV media has seen anupward swing from year 2005 to 2007,which is: 15% in 2005

17% in 2006

18% in 2007

*But the growth in the year 2008 is

estimated to be only 17%.

*Source: AdEx Report-2007.


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The Growth of TV market YoY

2005

2006

2007

2008

15%

17%

18%

17%

14%

14%

15%

15%

16%

16%

17%

17%

18%

18%

19%

1 2 3 4

2003.5

2004

2004.5

2005

2005.5

2006

2006.5

2007

2007.5

2008

2008.5

Series2

Series1

2005 2006 2007 2008(ESTIMATED)

15% 17% 18% 17%


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Growth in TV & Media Industry

*Cumulative Annual Growth Rate(CAGR) is appx.18%, which is theforecast for the industry over next 5

years period. *Reasons for Growth:-

Technological Advancements.

Entry of large corporate players in all segments of

the industry. Increase in disposable income amongst Indian

consumers & several other factors.



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FDI in News & EntertainmentIndustry

*Almost 13 proposals for FDI in media werecleared by Ministry of Information &Broadcasting in 2006. Among these, are 8

proposals for News & Current Affairssegment.

*2006 saw maximum flow of ForeignInvestment in the E & M industry.

*The industry has secured FDI inflowapprox. Rs. 8.5 billion in the year 2007.

*Source: Price Waterhouse Cooper (PWC) report *2007 &*2008.


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FDI in E & M industry

FDI in Television channels: Entertainment channels = 49%

News channels = 26%

FDI in Print Media Segment: Non- News Publication = 100%

News Publication = 26%

FDI in Radio Sector: FM Radio sector = 20%

*Source: The Association of Media & Entertainment Council (AMEC)

report-2008 &PWC report 2008.


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Diversification & Investments

*Most notable developments in E & Mindustry were the diversification in thevalue chain of the industry, such as:

The TOI Group, having its presence in Print, TV& Radio entered into Filmed EntertainmentBusiness with the release of its First English Filmin 2006.

UTV diversified into Gaming by investing intoGaming companies India Games & Ignition.



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Diversification Chart forTimes Of India Group

TV & Radio Film Ent.

Print Media

TOI Group

TOI Group being present into Print, TV & Radio now entered intoFilm Entertainment.


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Diversification Chart for UTV

UTV

TV Entertainment &

News Gaming

UTV diversified into Gaming from TV Entertainment & News.


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Diversification & Investments

NDTV announced its plans to launch anentertainment channels in collaboration withfilm-maker Karan Johars Dharma Productions &also invested in a Radio Company incollaboration with a Sun Group.

Adlabs, having its presence in Films & Radioentered into TV Production by investing inSynergy Communications.



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Diversification Chart for NDTV

NDTV

TV Entertainment& News

Film Production

Radio in collaboration

with Sun Company

NDTV being present in TV Entertainment & News entered into Films& Radio as well.


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Diversification Chart forAdlabs

Adlabs

Films Radio

TV Productions by investing inSynergy Communications

Adlabs being present in Films & Radio entered into TV Productions.


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Indian Electronic Media Industry

*The no. of TV Channels in India mayreach 500 by the end of 2008 from402 in 2007.

*Amongst all the channels, Hindientertainment channels account foras much as 75% of nationalviewership & 80% of the advertising

revenue.

*Source: The Association of Media & Entertainment Council (AMEC)report-2008.


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Share of Various advertising mediain Indian Market

Newspapers & Magazines hold 51% share,which is maximum in the Indian MediaAdvertising Market.

The largest share goes to TV which comesaround 36%.

Radio & Internet hold only 5% share as if now.

Outdoor & Retail Media contains almost 8%

share of the Indian Media Advertising Market.

*Source: AdEx Report-2007.


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Share of different media in market

Maximum share still lies with Print Media, TV holds secondlargest share in the advertising media market.

TV36%

Newspapers &Magazines

51%

Radio &Internet

5%

Outdoor &Retail Media

8%


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Advertising in TV industry

*The no. of advertisers on TV grewby 29% in the span of 5 yrs. from

2003-07. *The no. of brands advertised by

these advertisers grew by 23% in2007 as compared to 2003.



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Potential for TV & News Industry

Liberal Foreign investment policies by thegovernment can boost the growth ofEntertainment & News segment in India.

Indian Rural market which is 3 times largerthan the urban market is yet to explore bythe media industry.

TV & News industry is growing faster thanthe nominal GDP growth due to incomeelasticity wherein when income rise,proportionately more resources get spenton leisure & entertainment.


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Potential for Growth of TV & NewsIndustry

Low Ads Spend

Liberal FDI Policies

Untapped RuralMarket

Economic Impetus

Reasons for Growth

Demand forContent



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Potential for TV & News Industry

Indian Advertising spends as a percentageof GDP is only 0.34 per cent, which is waybelow the percentages for both developedand developing countries. This provides animmense potential for growth.

There is a huge demand for content in E &M industry other than just Hindi & EnglishContent. Growing demand for content on

vernacular languages & dubbed foreigncontent is attracting the big players toIndian Media Industry to invest in.


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Hindi News Channels Market

The top 7 Hindi News Channels in theHindi Speaking Market (HSM) are asfollows:

Aaj Tak. India TV.

Star News.

IBN 7.

Zee News. NDTV India.

News 24.


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Chart of HSM (Day Part) for HindiNews Channel

S.No. Channels Reach(in 000 )

% 0fReach

TimeSpending(Min. : Sec.)

TVR(TV Rating)

1 Aaj Tak 17011 46.56 12.41 0.18

2 India TV 15168 41.52 11.48 0.17

3 Star News 14600 39.96 11.23 0.16

4 Zee News 12315 33.71 07.22 0.11

5 IBN 7 12304 33.68 06.53 0.10

6 NDTV India 10507 28.76 04.56 0.07

7 News 24 9599 26.28 04.04 0.07

* Source: TAM- (TVR) Report, 34th week, 2008 for HSM.


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Chart of HSM (Prime Time) forHindi News Channel

S.No. Channels Reach(in 000)

% 0fReach

TimeSpending(Min. : Sec.)

TVR(TV Rating)

1 Aaj Tak 11765 32.20 05.08 0.27

2 India TV 10076 27.58 04.46 0.253 Star News 10020 27.43 04.48 0.25

4 IBN 7 7663 20.97 02.36 0.14

5 Zee News 7346 20.11 02.52 0.15

6 NDTV India 6383 17.47 01.57 0.10

7 News 24 5596 15.32 01.41 0.09



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Current Scenario & Status Reportfor Top Hindi News Channels.

Both Day& Prime

Time

Both Day& Prime

Time

India TV

Both Day &Prime Time

Star News

Aaj Tak

IBN 7

Day & PrimeTime

ZeeNews

Day & PrimeTime

NDTVIndia

Both Day& Prime

Time

News24

Both Day& Prime

Time

1st 2nd 3rd 4th 5th 6th 7th

ZeeNews

IBN 7


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Current Scenario & Status Reportfor Top Hindi News Channels.

Aaj Tak stands on top in both Day Part & Prime Time inHindi Speaking Market.

India TV & Star News stand on 2nd & 3rd position in bothDay & Prime time in HSM.

Zee News in Day Part & IBN 7 in Prime Time is on the 4thposition in HSM. IBN 7 in Day Part & Zee News in Prime Time stand on

the 5th position in HSM. NDTV India & News 24 remains on 6th & 7th position in

both Day & Prime Time in HSM.



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Other Popular Hindi News Channelsin Hindi Speaking Market (HSM)

India News : Reach (in 000) : 1813 (Day Part), 933 (Prime Time) % Reach : 04.96 (Day Part), 2.55 (Prime Time) Time Spent (MM.SS): 0.33 (Day Part), 0.11 (Prime Time) TVR : 0.01 (Day Part), 0.01 (Prime Time)

Voice Of India : Reach (in 000) : 6775 (Day Part),4200 (Prime Time) % Reach : 18.55 (Day Part), 11.05 (Prime Time) Time Spent (MM.SS) : 03.02 (Day Part), 1.09 (Prime Time) TVR : 0.04 (Day Part), 0.06 (Prime Time)

TEZ (Aaj Tak): Reach (in 000) : 7072 (Day Part),4183 (Prime Time) % Reach : 19.36 (Day Part), 11.45 (Prime Time) Time Spent (MM.SS) : 03.20 (Day Part), 1.12 (Prime Time) TVR : 0.05 (Day Part),0.06 (Prime Time)

* Source: TAM- (TVR) Report, 34thweek, 2008 for HSM.


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Chart for Other Popular HindiNews Channels in HSM

India News

VOI

TEZ

Others

Note: These 3 channels together hold even less than 10% share of Hindi Speaking Market &rest share belong to the other channels excluding these three.

This chart does not representtheshare of top news channels (which covers more than 80%market). It only represents the remaining share of other popular news channels in the HSM.


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Other Popular Hindi News Channelsin Hindi Speaking Market (HSM)

Other than top brands (holding more than 80% oftotal market share), the popular news channels inHSM are TEZ (Aaj Tak), VOI (Voice Of India) &India News, which together holds even less than10% of the market share.

Amongst all the three, TEZ (Aaj Tak) holds themaximum share, VOI stands on the 2nd position &India News holds least share, which is not even 2%of total HSM as if now.

Except these 3, there are other players in the markettoo like Samay, Live India etc. covering the remainingpart (which is more than 10%) of the total HindiSpeaking Market.


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Key players of the Non-NewsChannels in Indian Market

*Sun TV is one of the largest regionalbroadcasters in Southern India. It is on this unique position because of the

increase in local & regional languages content.

It has recorded steady growth in revenue of over10 % annually for past 3 years.

*UTV Software is one of the most activeIndian Entertainment Companies withexpanding relationship with Disney. UTV is believed to have valued itself at about

$700 million.



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Key players of Non-News Channelsin Indian Market

*Zee Entertainment Enterprises (Zee TV)is the largest producer & aggregator of Hindiprogramming in the world. Zee has an estimated reach of 500 million viewers

in over 120 countries globally including US,Canada, Europe, Africa, Middle East, South EastAsia, Australia & New Zealand.

*Non-Indian Entertainment Companies: Disney channel. Sony Entertainment Television.

Star TV.



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Thank You

Prepared By:

Parul Gupta

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